As enacted

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Inland Revenue Act 2006 · As enacted · Chapter III · Exemption from Income Tex

7. Exemptions from income tax of certain persons (other than individuals) on the whole or any part of their profits and income

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

There shall be exempt from income tax—

(a)

the profits and income of—

(i)

the World Tourism Organization;

(ii)

the United Nations Organization, including the net annual value of any land and improvements thereon in Sri Lanka owned by and occupied by or on behalf of the Organization;

(iii)

the International Development Association;

(iv)

the Asian Development Bank;

(v)

the International Finance Corporation;

(vi)

the International Bank for Reconstruction and

Development or any other international or foreign organization approved by the Minister, being profits and income attributable to the interest and other charges on any loan granted to the Development Finance Corporation;

(vii)

the International Irrigation Management

Institute;

(viii)

the Trust Fund set up with European Economic

Community Funds for the benefit of the settlers in–

(i)

Zones 2 and 3 of System B area ; and

(ii)

System G area ;

demarcated and administered by the Mahaweli

Authority of Sri Lanka, established by the

Mahaweli Authority Act, No. 23 of 1979;

(ix)

the International Committee of the Red Cross;

(x)

the Overseas Private Investment Corporation of the United States of America;

(xi)

the Overseas Economic Co-operation Fund of

Japan;

(xii)

the World Conservation Union;

(xiii)

the Commonwealth Development Corporation;

(xiv)

the India - Sri Lanka Foundation incorporated under the Companies Act, No. 17 of 1982;

(xv)

the European Investment Bank;

(xvi)

the Nordic Development Fund established pursuant to the treaty entered between the

Governments of Denmark, Finland, Iceland,

Norway and Sweden on November 2, 1988 ;

(xvii)

the Nordic Investment Bank ;

(b)

Profits and income, other than profits and income from dividends or interest of any person being –

(i)

the Incorporated Council of Legal Education, established by Council of Legal Education Act,

(Chapter 276) ;

(ii)

the Institute of Charted Accountants of Sri

Lanka, established by the Institute of Chartered

Accountants of Sri Lanka Act, No. 23 of 1959 ;

(iii)

the Sri Lanka Tea Board, established by the Sri

Lanka Tea Board Law, No. 14 of 1975;

(iv)

the Ceylon National Library Services Board, established by the Ceylon National Library

Services Board Act, No. 17 of 1970 ;

(v)

any University which is established or deemed to be established under the Universities Act,

No. 16 of 1978;

(vi)

the Coconut Development Authority, the

Coconut Research Board and the Coconut

Cultivation Board, established by or under the

Coconut Development Act, No. 46 of 1971;

(vii)

the Widows’ and Orphans’ Pension Fund for

Public Officers of Sri Lanka (Chapter 431) ;

(viii)

any Widows’ and Orphans’ Pension Fund or

Scheme established for the Local Government

Service ;

(ix)

any institution or trust of a public character established by any written law, solely for the purposes of scientific research;

(x)

the S.W.R.D Bandaranaike National Memorial

Foundation, established by the S.W.R.D

Bandaranaike National Memorial Foundation

Law, No. 2 of 1975;

(xi)

the National Science Foundation, established by the Science and Technology Development

Act, No. 11 of 1994 ;

(xii)

the Industrial Technology Institute, established by the Science and Technology Development

Act, No. 11 of 1994;

(xiii)

the Sri Lanka Standards Institution, established by the Sri Lanka Standards Institution Act, No.

6 of 1984;

(xiv)

any Resort Authority, constituted under subsection (1) of section 57 of the Tourist

Development Act, No. 14 of 1968;

(xv)

the Ceylon Tourist Board, established by the

Ceylon Tourist Board Act, No. 10 of 1966;

(xvi)

the Monetary Board, established by the

Monetary Law Act (Chapter 422) being the profits and income of the Central Bank of Sri

Lanka;

(xvii)

any registered society within the meaning of the Co-operative Societies Law, No. 5 of 1972, the majority of the members of which are resident in Sri Lanka, being profits and income of that society arising out of any business specified by the Minister by notice published in the Gazette, having regard to Government policy in relation to the Co-operative movement.

For the purpose of ascertaining the membership of a registered society of which another registered society is a member, each of the members of the second-mentioned society shall be deemed to be a member of the first mentioned society;

(xviii)

the Sri Lanka Foundation Institute, established by the Sri Lanka Foundation Law, No. 31 of 1973;

(xix)

the Sri Lanka Inventors Commission, established by the Sri Lanka Inventors

Incentives Act, No. 53 of 1979;

(xx)

the Ceylon Medical Council, established by the Medical Ordinance (Chapter 105);

(xxi)

Ayurvedic Medical Council, established by the

Ayurveda Act, No. 31 of 1961;

(xxii)

the Homoeopathic Council, established by

Homoeopathy Act, No. 7 of 1970.

(xxiii)

the Sri Lanka College of Physician,s established by the Sri Lanka College of Physicians

(Incorporation) Act, No. 9 of 1971;

(xxiv)

the Institute of Engineers, Ceylon, incorporated by the Institute of Engineers, Ceylon Act, No.

17 of 1968.

(xxv)

the Sri Lanka Export Credit Insurance

Corporation, established by the Sri Lanka

Export Credit Insurance Corporation Act, No.

15 of 1978;

(xxvi)

the Sri Lanka Export Development Board, established by the Sri Lanka Export

Development Board Act, No. 40 of 1979.

(xxvii)

the Sri Lanka Ex-Servicemen’s Association, established by the Sri Lanka Ex-Servicemen’s

Association Law, No. 8 of 1976;

(xxviii)

a company registered under Part VIII of the

Companies Act, No. 17 of 1982, being profits and income arising to such company from a ship which is–

(i)

engaged in international operations;

(ii)

owned or chartered by such company; and

(iii)

deemed to be a Sri Lanka ship by reason of a determination made under paragraph (c) of section 30 of the Merchant Shipping

Act, No. 52 of 1971, other than profits and income arising to such company from the carriage, by that ship, of passengers, mails, livestock and goods, to or from a port in Sri Lanka;

(xxix)

the Institute of Fundamental Studies Sri Lanka, established by the Institute of Fundamental

Studies, Sri Lanka Act, No. 55 of 1981;

(xxx)

the International Winged Beans (Dambala)

Institute, established by the International

Winged Beans (Dambala) Institute Act, No. 7

of 1982;

(xxxi)

the Buddhist and Pali University of Sri Lanka and any Higher Educational Institution, established by or under, the Buddhist and Pali

University of Sri Lanka Act, No. 74 of 1981;

(xxxii)

the Sri Lanka Institute of Printing, established by the Sri Lanka Institute of Printing Act, No.

18 of 1984.

(xxxiii)

the Energy Conservation Fund, established by the Energy Conservation Fund Act, No. 2 of 1985;

(xxxiv)

the Tea Small Holdings Development Authority, established by the Tea Small Holdings

Development Law, No. 35 of 1975;

(xxxv)

the Co-operative Development Fund, established under the Finance Act, No. 11 of 1963;

(xxxvi)

the Board of Investment of Sri Lanka, established by the Board of Investment of Sri

Lanka Law, No. 4 of 1978;

(xxxvii)

the National Defence Fund, established by the

National Defence Fund Act, No. 9 of 1985;

the Sri Lanka Institute of Architects, incorporated by the Sri Lanka Institute of

Architects Law, No. 1 of 1976;

(xxxix)

the Surveyors’ Institute of Sri Lanka, incorporated by the Surveyors’ Institute of Sri

Lanka Act, No. 22 of 1982;

(xl)

the Institute of Chemistry, Ceylon, incorporated by the Institute of Chemistry (Ceylon) Act, No.

15 of 1972;

(xli)

the Sri Lanka Institute of Development

Administration, established by the Sri Lanka

Institute of Development Administration Act,

No. 9 of 1982;

(xlii)

the Agricultural and Agrarian Insurance Board, established by the Agricultural and Agrarian

Insurance Law, No. 20 of 1999;

(xliii)

the Superior Courts Complex Board of

Management, established by the Superior

Courts Complex Board of Management Act, No.

50 of 1987;

(xliv)

the Institute of Policy Studies of Sri Lanka, established by the Institute of Policy Studies of

Sri Lanka Act, No. 53 of 1988;

(xIv)

the Credit Information Bureau of Sri Lanka, established by the Credit Information Bureau of Sri Lanka Act, No. 18 of 1990;

(xIvi)

Rubber Research Board, established under the

Rubber Research Ordinance, (Chapter 439);

(xIvii)

the Buddha Sasana Fund, established by the

Buddha Sasana Fund Act, No. 35 of 1990;

(xIviii)

the J R Jayawardena Centre, established by the

J R Jayawardena Centre Act, No. 77 of 1988;

(xlix)

the Institute of Supply and Materials

Management, Sri Lanka, established by the

Institute of Supply and Materials Management,

Sri Lanka Act, No. 3 of 1981;

(I)

the Stabilization fund for Tea, Rubber and

Coconut, established under Part IV of the

Finance Act, No. 38 of 1971;

(Ii)

the Janasaviya Trust Fund, incorporated under the Trust Ordinance (Chapter 96);

(Iii)

the Institute of Bankers of Sri Lanka, established by the Institute of Bankers of Sri Lanka Act,

No. 26 of 1979;

(Iiii)

the Institute of Personnel Management, Sri

Lanka, incorporated by the Institute of

Personnel Management, Sri Lanka Law, No. 24

of 1976;

(Iiv)

Public Enterprises Reform Commission of Sri

Lanka, established by the Public Enterprises

Reform Commission of Sri Lanka, Act, No. 1 of 1996;

(Iv)

the Securities and Exchange Commission of

Sri Lanka, established by the Securities and

Exchange Commission of Sri Lanka Act, No.

36 of 1987;

(Ivi)

the Bandaranaike Museum Committee, incorporated under the Bandaranaike

Museum Committee (Incorporation) Act,

No. 28 of 1997;

(Ivii)

the Geological Survey and Mines Bureau, established under the Mines and Minerals Act,

No. 33 of 1992;

(Iviii)

Management Corporation, established under the Apartment Ownership Law, No. 11 of 1973

as last amended by Act No. 39 of 2003 ;

(Iix)

the Sri Lanka Institute of Taxation, incorporated by the Sri Lanka Institute of Taxation

(Incorporation) Act, No. 21 of 2000.

(c)

the income of any local authority or Government institution, exclusive of–

(i)

the income of any trust or other matter vested in or administered by such authority or institution, being income to which such authority or institution is not beneficially entitled; and

(ii)

the profits and income for any period commencing on the date of acquisition or vesting, as the case may be, of any business undertaking acquired by or vested in the

Government, under the Business Undertakings

(Acquisition) Act, No. 35 of 1971;

(d)

the profits and income of –

(i)

the Government of any foreign country, being profits and income derived by that Government either directly or through any agency of that

Government from aid granted in money, goods, services or in any other form by that

Government, to the Government of Sri Lanka;

(ii)

the Government of the People’s Republic of

China, or of any agency of that Government, being profits and income derived from the business of ship-owner or charterer, and referred to in any agreement entered into between that

Government and the Government of Sri Lanka;

(e)

the profits and income of a charitable institution, being—

(i)

the profits of a business carried on by that institution, if such profits are applied solely to a charitable purpose of that institution, and—

(A)

either the business is carried on in the course of the actual carrying out of a primary purpose of that institution or the work in connection with the business is mainly performed by the beneficiaries of that institution; or

(B)

such institution receives grants from the

Government of Sri Lanka and is approved by the Minister for the purposes of this paragraph, and the business is of a casual nature;

(ii)

the net annual value of–

(A)

any place of public worship and its premises administered by such institution;

(B)

any place or premises owned and occupied by such institution solely for any of the purposes of that institution;

(iii)

the profits and income from any property donated by royal or other grant before March 2, 1815, to any place of public worship administered by such institution, in so far as such profits and income are applied to the purposes for which such grant was made;

(f)

the profits and income of any undertaking for operating yachts and pleasure crafts registered with the Director of Merchant Shipping, if such undertaking is–

(i)

carried on by individuals who are not citizens of Sri Lanka or by a company the shares of which are owned entirely by individuals who are not citizens of Sri Lanka or by non-resident companies; and

(ii)

approved by the Minister;

(g)

the profits and income of –

(i)

the Tower Hall Theatre Foundation, established by the Tower Hall Theatre

Foundation Act, No. 1 of 1978 ;

(ii)

the Central Cultural Fund, established by the

Central Cultural Fund Act, No. 57 of 1960 ;

and

(iii)